Athora's Acquisition Approval & Trends in UK Annuity Market

Athora, a leading European insurance carrier, has secured approval from the UK's Prudential Regulatory Authority to complete its significant acquisition of Pension Insurance Corporation (PIC) for £5.7 billion. This move was financed through Athora's equity fundraising, which amassed €3.5 billion (£3 billion). The acquisition, first announced last year, is set to conclude on March 27. Upon finalization, Athora’s assets under management and administration will exceed €130 billion, with PIC contributing about 45% of this total.

In its recent financial disclosure, Aviva reported bulk annuity sales totaling just over £4.6 billion for 2025, reflecting a 41% drop from the £7.8 billion new business seen in 2024, a year Aviva deemed more typical. Despite this, Aviva's individual annuity sales rose by 19% year-on-year to nearly £1.6 billion, the highest since pension freedoms were introduced. Aviva remains committed to low capital strain bulk annuity business, achieving an internal rate of return above their low-teens guidance.

Royal London presented its annual financial outcomes, highlighting its inaugural full calendar year in the bulk annuity market. The mutual company completed 18 transactions in 2025, totaling £1.3 billion, which contributed to an 18% increase in the group’s adjusted operating profit. Notable transactions included a £213 million buy-in for the Oxford Instruments Pension Scheme and a £120 million deal involving Lufthansa-sponsored schemes.

Earlier this month, Canada Life concluded an £80 million buy-in with the Safeway Pension Scheme, securing benefits for around 1,800 members. The collaboration, with Aon as lead broker and advisory from Clifford Chance and Gowling WLG, showcased efficient regulatory compliance. Shreyas Sridhar from Canada Life emphasized collaboration's crucial role, citing proactive administration and diligent due diligence. Aon’s James Staveley-Wadham lauded the engaged trustee board, led by Steve Southern of Vidett, for their commitment to protecting member benefits.